Notice Period Question.

happywarmgun

OK. My situation is this: I have been on a secondment for two years which comes to an end in August. In the meantime my original job has vanished so is not there to go back to at the end of the secondment. I am therefore 'at risk' of redundancy.

Now, I don't want tears or sympathy - the reality is that I'm very well paid, have been there for a chunk of time and have a contract with a six month notice period. The package on the table seems fair. They want to pay me my redundancy pay (x years time 3 weeks first 30k tax free) and at the moment they want to pay me my six months notice period in lieu of notice (basic salary only, no benefits or pension or bonus entitlement). It was in my original contract they could pay me in lieu of notice so: Fine.

To be honest I want to go. And to be fair they are not serving me notice until the last day of my secondment - realistically I guess they could serve it now if they were very harsh.

Can somebody tell me though where I stand if they decide they have found me a 'project' to work on for my notice period. i.e. if they found me something similar-ish (though not the same) as my old job to keep me busy rather than paying me off in lieu - can they make me do it? How dissimilar does it have to be to your old job before you can tell them to go jump?

dbuk44

I think you'd have to demonstrate a significant change to working conditions i.e hours, an increased need to travel etc. If the skills required to do the project work are similar-ish dont think there is an out....

happywarmgun

Thanks for the reply dbuk. That was sort of my guess - but does anybody know the definitive legal position on this or any case law that touches upon it?

getmore4less

Once you have the termination notice saying they will pay you PILON I don't think they can change that without you agreeing so work towards getting a termination letter.

What have they said in the at risk letter, is should include the redundency terms, if that says PILON then I also think they have to stick to it and can't change their minds and have you work notice.

If they find other work then I think they should offer it as an alternative and if you take it you are no longer redundant(but could be again later).

happywarmgun

getmore4less wrote: »

Once you have the termination notice saying they will pay you PILON I don't think they can change that without you agreeing so work towards getting a termination letter.

What have they said in the at risk letter, is should include the redundency terms, if that says PILON then I also think they have to stick to it and can't change their minds and have you work notice.

If they find other work then I think they should offer it as an alternative and if you take it you are no longer redundant(but could be again later).

getmore4less: Thanks for that. My at risk letter does not mention PILON, they have only given me a quote for the redundancy payment. The subject of PILON has only been mentioned at my 'consultation' meeting. I think maybe I need force the issue - how far ahead of a termination date should one expect the termination letter?

BlueIsTheColour

Notice can only be changed with the consent of both parties, so as has been said get it in writing that it will be PILON and then if they wanted to change afterwards, they can only do it if you agree

scottn

push for your PILON to include your company pension contributions either made to your pension pot or paid in your salary.

if you want to go, just ask for your next consulation meeting as soon as possible and state that you want to leave at the earliest possible opportunity and will go without any hassle if they can issue you with notice shorly after or at your next meeting.

getmore4less

happywarmgun wrote: »

getmore4less: Thanks for that. My at risk letter does not mention PILON, they have only given me a quote for the redundancy payment. The subject of PILON has only been mentioned at my 'consultation' meeting. I think maybe I need force the issue - how far ahead of a termination date should one expect the termination letter?

If it was just a we are considering PILON then that is still up for negotiation. If it was a we want to PILON then much stronger case to insist.

Consultation is 2 way to try to avoid or reduce the impact on both the emplyee and employer, looks like you could make the next meeting the last, you don't want another job, minimum impact is get the money and go, does the employer need you for anything? offer to do what is needed, leave on good terms with a load of dosh.

Once consultation is complete they can issue the termination letter, if paying PILON the termination date could be immediate(next day). If not it will need to include notice.

The company can make the date in the future even if paying PILON so that handover if needed can be done.(Looks like none/little needed though)

Unless the contractual PILON is for BASIC only, push for full benifits, maybe back off on the bonus if pushed often they have must be working clauses.


If the redundancy is over the 30k look at other options like top up the pension or paying over 2 tax years(only usefull if you are not going to work or stay below the HRT).

happywarmgun

Thanks for the replies. My contract is very clear that any PILON will be at basic salary only. Having reviewed the company's statement of what my package was worth last year my benefits (car allowance, pension, etc) is about 30% of my total - which is I guess why there is an advantage to them in getting me out the door quickly rather than have me hang around photo copying or whatever.

I am curious though how I can negotiate anything around this to be to my advantage. Presumably any portion of the PILON I asked to be put as an AVC to my pension fund would be at full 40% relief? If so it may be sensible to fund the next six months equivalent of pension pay myself out of my PILON to reduce the gap I'll no doubt build up on the beach....

getmore4less

Might be worth a check to see if PILON can be done on basic allthough if in the contract it's probably OK.

Bottom line with any of these situations is what do you want?

This employer looks OK, some of the people might move on to new places, why burn bridges if the deal is OK anyway get out smiling with the prospect of future work, if you want it.

You can put a fair amount into the pension, down side it is not always the best option (only tax deferal not tax relief)
Read up on this if a decent earner.